The fund will have the flexibility to in all the debt securities issued and/or guaranteed by the public financial institutions and the banks. The investment would comprise of investing 90-100 per cent of the portfolio in low risk money market instruments and government securities and securities held under reverse repo, including the cash or call money market.

Income of the scheme would be fully exempt from income tax under section 10 (23D) of the Income Tax Act, 1961 and would also have the capital gains tax exemption benefit under sections 54EA and 54EB. Accroding to the union budget 1999-2000the dividends declared by mutual funds are tax free in the hands of unitholder.

There is no lock-in period for investments made in the scheme and no entry load on subscriptions in the initial offer peirod. The scheme will also not charge any exit load for redemption of units after a holding period of 6 months but an exit load of 0.5 per cent would be levied if the redemptions are made before that.

The Sun F&C AMC is the investment manager to the Sun F&C Performance Fund, an open-ended equity growth scheme with the current net assets at Rs 90.28 crore. The NAV of the scheme as on June 1 is Rs 19.48. The Performance Fund is a special scheme which is fully subscribed by the India Performance Fund (IPF), a Mauritius-based open-ended offshore fund. The AMC also acts as the investment advisor to IPF.

The other schemes under the portfolio of the AMC include a growth fund and an income fund. The Sun F&C Value Fund, is an open-ended equity growth scheme. The NAV of the scheme was Rs 18.25 as on June 1 with thenet assets under management at Rs. 9.04 crores.

The Sun F&C Money Value Fund is an open-ended dual option fixed income scheme which closed for initial subscription on November 9, 1998. The NAV of the scheme was Rs 10.63 for the bond option and Rs 10.5122 for the liquid option as on June 1, 1999 with the net assets at Rs 11.60 crore for the bond option and Rs 3.74 crore for the liquid option.

The Sun F&C Mutual Fund is a mutual fund set up by Foreign & Colonial Emerging Markets (FCEM) in association with the SUN Securities (India) Pvt Ltd. FCEM is part of the Hypo F&C Group (a 90% subsidiary of HypoVereinsbank AG of Germany), one of Europe's leading asset management groups with assets under management of more than US$ 36 billion (Rs 1,54,800 crore).